Though painful, Intel has completed a difficult 1999 transition year, and is now poised to demonstrate both its technology and manufacturing prowess - traits that enabled Intel's stock to double in prior cycles.

However, we believe a bright spot for (Silicon Image) was its exposure to the consumer Japanese market, which was a pocket of strength, and has provided some cushion to the overall softened demand.

Historically, the product-transition periods have been very disruptive for Intel.

Intel was able to minimize its revenue decline in NOR flash to only 0.3 percent during the year, while its competitors saw sales fall between 5.5 percent to 50 percent.

It is tempting to write the history of technology through products: the wheel; the microscope; the airplane; the Internet. But it is more illuminating to write the history of technology through transitions: linear motion to circular motion; visual space to subvisual space; motion on land to motion on air; physical connectivity to virtual connectivity.

It's by far the easiest and least painful transition we've been through.